Wiley Practitioner's Guide to GAAS 2022

15AU-C 500 Audit Evidence

• Technical Alert
• Scope
• Definitions of Terms
• Objective of AU-C Section 500
• Requirements
  • General Guides to the Relevance and Reliability of Evidence
  • General Guides to Sufficiency of Evidence
  • Audit Procedures for Obtaining Audit Evidence
  • Sources of Information
  • Using Automated Tools
• Interpretations
  • The Effect of an Inability to Obtain Evidential Matter Relating to Income Tax Accruals
  • Auditor of Participating Employer in a Governmental Cost-Sharing Multiple-Employer Pension Plan
  • Auditor of Participating Employer in a Governmental Agent Multiple-Employer Pension Plan

TECHNICAL ALERT

In July 2020, the ASB issued SAS 142, Audit Evidence. This SAS supersedes AU-C 500 and amends other sections. The SAS is effective for audits of financial statements for periods ending on or after December 15, 2022, and its changes are included in this chapter.

SAS 142 defines what constitutes audit evidence and lays out the attributes of information that auditors should factor into their evaluation of whether to use that information as audit evidence. Having those attributes in GAAS should also help the auditors maintain professional skepticism. Attributes of audit evidence include accuracy, completeness, authenticity, and susceptibility to bias. The SAS provides examples of the use of automated tools and techniques and allows their use in both risk assessment and substantive procedures concurrently.

SAS 142 also moves the guidance on management's specialists from AU-C ...